All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Hela Ben hassine khalladi
''Financial crises management by the International Monetary Fund: Was external and public debt sustainable ?''
( 2017, Vol. 37 No.1 )
The main contribution of this paper is to analyze whether the absence of restructuring programs during some financial crisis episodes was justified. In other words, was the countries' debt sustainable, allowing an intervention through only an IMF bailout ? Using a non- parametric methodology (Classification And Regression Tree or CART), the fiscal and the external solvency of countries facing financial troubles since the 80's was assessed. It is found that, in some crisis episodes, like the one faced by Argentina in 1995, Brazil in 1999 and Turkey in 2001, a debt restructuring plan was necessary while the countries clearly exhibited solvency problems. This can explain the inefficiency of the IMF intervention during some crises.
Keywords: Financial crises, external and public debt sustainability assessment, IMF
JEL: F3 - International Finance: General
Manuscript Received : Dec 21 2016 Manuscript Accepted : Jan 17 2017

  This abstract has been downloaded 1298 times                The Full PDF of this paper has been downloaded 154297 times